STRATEGIC REPORT

Country Evaluation and Selection

Country Evaluation and Selection

Introduction

The paper aims to focus on the new product development in the new market. As an employee of the Global Ventures Plc, an idea has been presented to come up with the new Fashion Apparel products in one of the emerging markets i.e. Brazil. The products will be sold in the region of Brazil due to the potential in the market. The strengths of the proposed services are explained in the paper as well. The significance of the Brazilian industry with respect to the textile sector has been discussed in the paper. The broader aspects of the industry have been analyzed in order to take the decisions in an effective way. The fashion apparel is one of the leading and most important in the in the production of material goods. The clothing and apparel segment in the textile industry it's of significant importance especially in BRIC countries (Schiffman & Kanuk, 2007).

In the apparel segment, a great need is focused on new fashion clothing, business management for inventory optimization, use of technologies along with the modern organizational techniques. The textile garments is uncompetitive in Brazil. In the clothing business, there are many small and micro enterprises. Small number of them accounted for 75% of production. Thus, the largest companies are developed as modern production process and the reduced diffusion new equipment and machinery. As the country is increasingly incorporated into the global economy, the market is transformed towards expanding its presence in the organized (online) retailers, both local and international.

Background

The main bottlenecks for Brazilian textiles are low information, low production flexibility, insufficient investment in product development and design, deficiencies in commercialization and large informal sector of manufacturing. Textile exports do not reach the level of 1% of world trade in this sector. But despite that; Brazil presents some advantages related to cost, especially hand labour and energy. The strategy predominant business in the textile industry is the merger between companies, seeking scales technical and economic. In addition to the upgrade of machinery and equipment, in the clothing industry, the main representative and strategy is the implementation of outsourcing some stages of the production process (Cooper, 2001). According to experts of the international analytical agency, a global retail experiences literally modernization due to the massive influx of investment in this sector of the world economy.

The textile and apparel industry in Brazil can be compared to major world producers. It is ranked 8th among countries textile producers and 7th in the production of products made. Being its production almost entirely focused on the domestic market, the share of Brazil in international trade is still very small. In the world exports, Brazil occupies the 41th place and, in world imports it stands the 43rd place among the countries that excel in foreign trade textile. The amount of companies in each link of the textile production chain increases, while the average size of companies decreases as one move toward the finished ...